Learning from the TOYOTA way:14 Great Management Principles

Thursday, May 13, 2010

These are 14 principles which are outcome of great research work by Prof Jeffrey K. Liker's at Toyota production system. Simply, these principles build the philosophy of Japanese Culture which interconnects to whole system very effective manner for sustainable Performance. I think that when Principles become practice in the organization culture then automatically every Strategy can execute at the Bottom.

1. Base your management decisions on a long-term philosophy, even at the expensive of short-term financial goals.

2. Become a learning organization through relentless reflection and continuous improvement.

3. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.

4. Develop exceptional people and teams who follow your company's philosophy.

5. Build a culture of stopping to fix problems, to get quality right the first time.

6. Standardized tasks are the foundation for continuous improvement and employee empowerment.

7. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

8. Create continuous process flow to bring problems to the surface.

9. Use "pull" systems to avoid overproduction.

10. Level out the workload. (Work like the tortoise, not the hare.)

11. Use visual control so no problems are hidden.

12. Use only reliable, thoroughly tested technology that serves your people and processes.

13. Respect your extended network of partners and suppliers by challenging them and helping them improve.

14. Go and see for yourself to thoroughly understand the situation.

“To produce the right product at the right time in the right quantity for the customer and to produce exactly what you need and nothing more…”. Taiichi Ono, creator of the Toyota Production System/lean manufacturing

“Culture is not something you can manipulate easily. Attempts to grab it and twist it into a new shape never work because you can’t grab it”- Prof.John P. Kotter

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